LGN · Legence Corp. Class A Common stock

Legence Corp. delivered a standout first quarter in 2026, with revenue more than doubling to $1.04 billion, driven by a 57% organic growth rate (excluding the Bowers acquisition) and a 142% surge in the Installation & Maintenance segment. The I&M segment benefited from robust demand in data centers and technology, as well as the contribution from Bowers. Gross margin contracted to 17.9% from 22.1% a year ago, primarily due to a mix shift toward lower-margin I&M work and higher subcontractor costs, but adjusted gross margin (excluding certain compensation items) was 18.7%. Net income swung to a positive $16.1 million from a loss of $21.2 million, reflecting operating leverage and lower interest expense. Adjusted EBITDA rose 132% to $118.1 million, with margin expanding 140 basis points to 11.4%. Backlog reached a record $5.38 billion, up 104% year-over-year, providing strong visibility. Management raised full-year 2026 guidance: revenue now expected between $4.1 billion and $4.3 billion (up from $3.7-$3.9 billion) and Adjusted EBITDA between $470 million and $490 million (up from $400-$430 million). The company also provided Q2 2026 guidance of $1.05-$1.1 billion in revenue and $115-$125 million in Adjusted EBITDA. CEO Jeff Sprau highlighted robust demand and exceptional project execution across the platform, with strong tailwinds in diverse end markets.